Theory of Constraints
Change Better. We support companies to structurally improve their business…
Every organisation can be measured and controlled on 3# levels : throughput, inventory and operational excellence. To generate more profit, organizations require to maximize throughput while minimising inventory and operating expense. A structued approach to enable this is by bottleneck optimalisation. Based on our experience, we share a structured approach to Bottleneck Optimalisation
Incorrect assumptions lie at the root of every failure.
Have the courage to test your assumptions
A structued approach to enable this is by bottleneck optimalisation, as follows :
Step (1). Identify the biggest bottleneck or constraint. What has the highest utilization, acts as bottleneck or constraint and determines throughput, flow (of materials, money or people) or performance?
Step (2). Exploit the bottleneck or constraint to the max. Organize work activities in such a way that the bottleneck or constraint is 100% utilized.
Step (3). Implement quick wins and subordinate other resources to improve the bottlenecks or constraints capability to further increase throughput and performance.
Step (4) Evaluate. In case as a result of the improvement actions the bottleneck or constraint is no longer the bottleneck or constraint, start over with the next biggest bottleneck or constraint. Therefore, in order to continue increasing throughput you apply these 4# steps to the new bottleneck or constraint.
Reading List
Are you interested to lean more on the process how to solve bottlenecks from the process, improve speed and efficiency and generate more profit? If yes, go and study this book The Goal by Eliyahu Goldratt
…with our head in the sky and feet in the mud
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